WE RECOGNISE THE IMPORTANT ROLE THAT COMPANIES CAN PLAY IN INITIATING AND DRIVING CHANGE IN SUPPORT OF HUMAN RIGHTS. WE WILL CONTINUE TO WORK WITH IBLF AND OTHER ORGANISATIONS TO ADDRESS THE CHALLENGES AND OPPORTUNITIES WITHIN OUR INDUSTRY AND OUR SUPPLY CHAIN BECAUSE WE BELIEVE THIS TO BE THE BEST WAY TO FIND SUSTAINABLE SOLUTIONS
STEPHEN RUBIN CHAIRMAN PENTLAND GROUP PLC
Adam Leach
Business can no longer afford to leave the issue of migration to governments to address. Companies are in a strong position to use their core competencies to influence positive change in the countries where they operate. As important investors, companies can leverage their influence to encourage governments to improve the regulatory frameworks protecting migrant workers and level the playing field across countries. Furthermore, a policy of high standards with regards to all workers, including migrant workers explicitly, can boost companies competitiveness. A strong reputation based on fair policies can help to attract and retain good employees.
David Arkless
EXECUTIVE SUMMARY
From the international movement of professionals to the urban migration of unskilled rural workers, migration is a complex and multifaceted phenomenon characterised by risk but also opportunity for business and society. There is a strong business case for managing migration. Properly managed, migration offers substantial benefits to both employee and employer. Surplus labour in one country can help fill labour shortages in another to mutual benefit. The rights and status of migrants can be strengthened through responsible recruitment and employment practices and positive social inclusion measures beyond the workplace. Returning migrants can use new skills and wealth to contribute to the skilled labour pool and boost the sending economy, thereby creating a virtuous cycle. Remittances sent home by migrant workers provide developing countries with a vitally important external source of revenue that aids growth and boosts social infrastructure. Global migration can be a powerful catalyst for growth and development in both sending and receiving countries. Poorly managed, migration can lead to exploitation, particularly of the more vulnerable. Unnecessary government bureaucracy and a lack of transparency can impede the movement of workers and economic opportunities may be lost. Unregulated recruitment agencies engaging in exploitative practices, such as the excessive deduction of fees, cause widespread debt bondage. The illegal retention of identity and travel documents by unscrupulous employers creates situations of bonded labour. An influx of migrant labour can put a strain on services in receiving communities. It can trigger social tensions between locals and migrants, sometimes resulting in discrimination and abuse. Honey-pot labour migration, for example to a major infrastructure or mining site, also exacerbates health risks, such as a higher incidence of HIV/AIDS among male migrant workers in these sectors. Traditionally, managing migration has been the domain of government, with business viewed exclusively in the role of employer, or facilitator in the case of recruitment agencies. Today, however, the global scale and complexity of labour migration mean that companies come under increasing scrutiny for their treatment of migrant workers in their own operations and supply chains. They are also under growing pressure to play a constructive role in the management of migration, for example, by sharing their experience of migration and using their influence with governments to encourage fair and responsible migration practices; to engage with civil society and trade unions to ensure respect for migrants rights in the workplace; and to actively promote social inclusion. This report aims to draw together existing research and business practice examples to give an overview of the opportunities and risks associated with labour migration. It focuses on the positive impact business can have, both individually and collaboratively, through its three spheres of influence: core business activities, social investment and policy dialogue. The report also offers a framework for a business response to this complex and ever-evolving issue.
A migrant worker is: [a] person who is to be engaged, is engaged or has been engaged in a remunerated activity in a State of which he or she is not a national
The UN Convention on the Rights of Migrants1
http://portal.unesco.org/shs/en/ev.php-URL_ID=3020&URL_ DO=DO_TOPIC&URL_SECTION=201.html
OVERVIEW OF MIGRATION
Key Trends & Statistics
Migration flows have reached unprecedented levels over the last decade. According to 2010 forecasts, there will be almost 214 million international migrants worldwide, an increase of over 18 million since 20052. Globalisation is a key trend driving the demand for, and supply of, migrant labour. Increasingly mobile, millions of people migrate for work each year in search of better economic prospects, and generating in turn vital income for sending communities. The World Bank estimates that migrants generated remittances of over $443 billion globally in 2008, $338 billion of which flowed to developing economies3. Migration is a global issue. The United States, Russia, Germany, Saudi Arabia and Canada currently receive the largest number of international migrants, with top sending countries including China, India and the Philippines4. A large number of international migrants move from developing to developed countries. However, an increasingly significant trend is the migration flows between developing countries, in particular from Asian countries such as Bangladesh, India, Pakistan and the Philippines to Malaysia, Saudi Arabia, the UAE and Jordan5. Internal migration has also risen dramatically, predominantly from rural to urban areas. The number of internal migrants is estimated to be four times greater than the number of international migrants2. In China as of the end of 2008, 140 million rural workers were migrating to work in cities6. Similar patterns have arisen in Bangladesh, Vietnam, Indonesia, Cambodia and Thailand, with rural women making up a large proportion of these internal migrants. Migration impacts a broad range of sectors. Companies in the manufacturing sector draw a great deal of attention as they respond to a growing market for cheap consumer goods combined with downward pressure on costs, creating a strong demand for cheap
2 3 4 5 UNDP Human Development Report 2009 The World Bank Migration & Remittances Data: Migration and Development Brief 11 International Organization for Migration http://www.iom.int/jahia/Jahia/aboutmigration/facts-and-figures/lang/en BSR International Labour Migration: A Responsible Role for Business, October 2008 6 7
labour. However, other relevant sectors include the extractives, agriculture, construction and services, such as health care and the hospitality sector, particularly where there is a high demand for low-skilled labour. Under international human and labour rights conventions, migrant workers should share the same rights as local workers. However, in reality insufficient protection under national laws as well as international codes leaves migrants vulnerable to abuse. These abuses can range from the deduction of recruitment fees predeparture, to poor working conditions and discrimination, and, at the extreme, forced labour or trafficking. Migration is proving resilient in face of the recent global economic downturn. Despite an estimated 6 per cent fall in remittances to developing countries in 2009, at a global level new migration flows continue to increase, with a small recovery anticipated in 2010 and 20117. However, the downturn clearly has important implications for migratory activities as companies in many industries worldwide introduce large-scale employment freezes and contract their workforces. Sectors employing large numbers of migrants, such as manufacturing and construction, have been hit hard, with such migrants more likely to lose their jobs than domestic workers. Protectionist measures have also increased as governments prioritise nationals.
KEY STATISTICS
214 million international migrants globally2 740 million internal migrants2 $443 billion in remittances in 20083 49 per cent of global migrants are women4
Chinas National Bureau of Statistics http://www.cfr.org/publication/12943/ The World Bank: Migration and Remittance Trends 2009 https://blogs.worldbank.org/peoplemove/migrationand-remittance-trends-2009-a-better-than-expectedoutcome-so-far-but-significant-risks
Cemex: Construmex
Through the Construmex programme, construction firm Cemex has linked the billions of dollars of remittances flowing from its migrant workers in the US to addressing the lack of adequate housing in Mexico. Based on the discovery that a significant percentage of remittances were sent to Mexico to boost construction at home, the programme enables migrants to send aid in the form of housing materials. It also involves architects to design homes and calculate what materials are needed. As a result, over 4,500 US-based migrants have built homes in Mexico10.
Economic stimulus Well-managed immigration can boost receiving country economies via new spending, investment and tax contributions. In addition, skilled migration can stimulate business development and innovation. In sending countries, migration can be positively linked to development. Remittances boost local spending with positive knock-on effects, such as investment in public infrastructure and local enterprise development. In Bangladesh alone, remittances totalled almost $9 billion in 2008, 10 per cent of Gross National Income11. Returning migrants with new skills also commonly initiate entrepreneurial activity, which can help attract further foreign direct investment, creating a virtuous cycle of economic growth.
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International Organization for Migration - http://www.iom.int/ jahia/Jahia/about-migration/facts-and-figures/lang/en Western Union Global Workforce Impact Survey, December 2009 - http://corporate.westernunion.com/global_migration.html
10 Construmex website - http://www.cemexmexico.com/se/se_co.html 11 Martin, P., Reducing the Cost Burden for Migrant Workers: A Market-Based Approach, August 2009
Despite reports of growing protectionist and nationalistic sentiment prompted by the global recession, world business leaders believe that migration continues to be good for business and the economy
Western Union Global Workforce Impact Survey, December 2009
New business opportunities The particular needs of migrant communities can drive demand for new products and services in both sending and receiving countries, particularly in the financial services, information communication technology and travel sectors. Catering to the cultural tastes of migrant workers can create new business opportunities, such as for food and drink retailers and restaurants. In sending countries, returning migrants often bolster local SME development and represent potential new consumers for global companies. The more stable these consumers are, the greater the benefits for both business and society. Skills and knowledge transfers Skilled migrants can offer receiving countries access to professional qualifications that are not available in sufficient numbers domestically. In sending communities, returning migrants provide access to hitherto unavailable skills and expertise for firms based there.
Migrant workers in the UAE12 12 2010 Samer Muscati - http://www.flickr.com/photos/sultan/ 13 Western Union website - http://corporate.westernunion. com/news_media_MobileMoney.html
Migrant workers, Mae Sot, Thai/Burma18 14 Oxfam Briefing Paper Turning the Tide, July 2009 15 China Labour Bulletin - http://www.cfr.org/publication/12943/ 16 The National website - http://www.thenational.ae/apps/pbcs.dll/ article?AID=/20100131/NATIONAL/701309834/1010/FRONTPAGE
Migrant workers in general, and female migrants in particular, who generally work in low-paid, labour-intensive sectors, are often subjected to long overtime hours, poor or unsafe working conditions, and frequently are owed back wages by employers
Discrimination Migrants face discrimination from locals in receiving communities who may view them as a threat to their levels of pay, livelihood and local culture as well as competitors for jobs, housing and services. The eruption of violence in Southern Italy against seasonal African migrants in January 2010 highlights this risk. Extractives firms in particular acknowledge that a rapid influx of labour migrants to an area, the so-called honey-pot effect, can exacerbate social tensions. Ghettoisation means that migrants remain segregated. Health challenges Poor living and working conditions combined with a lack of access to health care can make migrants more prone to illness. Violence as a result of social tensions can threaten the well-being of migrant workers. Of particular concern is the increased incidence of HIV/AIDS among temporary18
male workers in mining and extractives communities, where prostitution brings with it problems associated with sexually transmitted diseases. According to The World Bank Group, 20 per cent of coal miners and 30 per cent of gold miners are HIV positive in South Africa, with serious implications for companies and communities, including lost productivity and lower life expectancy19. Brain drain While some migrants do return home, repatriating newly acquired skills, there is a risk that sending countries, particularly developing countries, will be deprived of educated workers as they are attracted abroad. More than half of all university graduates in parts of sub-Saharan Africa and Central America migrate to OECD countries, taking with them crucial learning in sectors such as education, health and engineering20.
Migrant sex worker, Mae Sot, Thai/Burma18 17 http://www.cfr.org/publication/12943/ 18 2010 John Hulme - http://www.flickr.com/people/jphulme/ 19 The World Bank: AIDS & Mining - http://web.worldbank.org/ 20 OECD: Migration and the Brain Drain Phenomenon - http://www.oecd.org/document/16/0,3343, en_2649_33935_39269032_1_1_1_1,00.html
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The International Labour Migration Focus Group brings companies together to address issues at local, regional and global levels affecting international labour migrants in supply chains. The aim is to identify responsible roles for business in international labour migration. - http://www.bsr.org/research/initiatives/ilm.cfm 20-21 BSR International Labour Migration: A Responsible Role for Business, October 2008
Policy Dialogue Advocating for change on public policy Engaging in dialogue with governments Supporting institution building Social Investment Financial contributions including traditional philanthropy, investing in social venture funds and other financial mechanisms Employee volunteering Product donations and other in-kind contributions Core Business Producing goods and services Buying ingredients and services Selling products Providing jobs and developing people
Remittances and brain drain Companies can increase the development impact of migration and reduce the dependence of sending communities on remittances by adopting policies that encourage the eventual return of migrants. Global firms with interests in both sending and receiving communities can actively support returning migrants. Through localisation policies whereby returning nationals are appointed to senior management roles after having worked for the same company overseas - firms retain trained employees as well as extend the benefit of migration to sending economies. Alternatively, firms can promote the employment and training of nationals where possible, retaining the acquired skills in the local communities where the projects are based. Responsible long-term planning can ensure a phased withdrawal after project completion, supporting the redeployment of workers. Oil company ExxonMobil successfully implemented such a policy for the development of the oil pipeline across Chad and Cameroon, hiring, training and promoting local workers26.
Companies, therefore, benefit from investment in adequate health provision for their migrant labour force, their dependents and local communities, whether by supporting state provision or providing health care directly. Measures such as those recommended by The World Bank Group for mining companies in South Africa (see box) highlight how companies can contribute to health efforts and education around health.
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The Gangmasters Licensing Authority (GLA): the role of Marks & Spencer
As part of the Temporary Labour Working Group (TLWG), a cross-sector alliance in the UK, M&S worked with the UK government, industry and trade unions to tackle the exploitation of temporary workers in the UK agricultural and food processing sector. The aim was to improve controls on migrant labour providers and resulted in the UK Code of Practice for Labour Providers. This voluntary code led to the Gangmasters Licensing Act in 2006, which established a government-run gangmaster licensing system. The GLA now licenses gangmasters in the food and agriculture sectors, using its power of revoking and refusing licenses to encourage a level playing field. There is evidence that this system has succeeded in improving standards and deterring exploitation by raising awareness of the risks to both agencies and workers of exploitative practices. The GLA continues to work constructively with gangmasters and retailers28.
28 Oxfam Briefing Paper Turning the Tide, July 2009 and UN Global Compact website - http://human-rights. unglobalcompact.org/doc/UNGC_MigrantWorkers.pdf
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KEY RESOURCES
Reports
BSR International Labour Migration: A Responsible Role for Business, October 2008 Martin, P., Reducing the Cost Burden for Migrant Workers: A Market-Based Approach, August 2009 Oxfam Briefing Paper Turning the Tide, July 2009 UNDP Human Development Report 2009 Western Union Global Workforce Impact Survey, December 2009
Websites
ASEAN Taskforce on the Protection of Migrant Workers http://www.aseanmigrant.org/ Colombo Process http://www.colomboprocess.org/ Ethical Trading Initiative (ETI) http://www.ethicaltrade.org/ Gangmasters Licensing Authority (GLA) http://www.gla.gov.uk/ Global Forum on Migration and Development (GFMD) http://www.gfmd-fmmd.org/ International Business Leaders Forum http://www.iblf.org Business and Migration Initiative http://www.business-migration-initiative.org International Labour Migration (ILM) Focus Group http://www.bsr.org/research/initiatives/ilm.cfm Institute for Human Rights and Business http://www.institutehrb.org/ ILO International Migration Programme (MIGRANT) http://www.ilo.org/public/english/protection/migrant/ The World Bank Development Group: Migration & Remittances http://www.web.worldbank.org/ International Organization for Migration http://www.iom.int/ OECD http://www.oecd.org/ Philippines Overseas Employment Administration http://www.poea.gov.ph/ UN International Migration Convention http://www.portal.unesco.org ~ /shs/en/ev.php-URL_ID=1513&URL_DO=DO_TOPIC&URL_SECTION=201.html
Acknowledgements
The Business of Migration: A report from International Business Leaders Forum IBLF 2010 Contributions from Frances House, Caroline Ersmarker, Hanniah Tarriq and Desiree Abrahams Edited by Lucy Amis and Alice Ready
Cover Image: 2010 John Hulme - http://www.flickr.com/people/jphulme/ Chiang Mai Thailand, In an area called Kamtieng each morning several hundred day laborers mostly Burmese but also from local Thai minority groups gather in the hope of getting a days work, pick-up trucks stop only to recruit the workers they need, most are employed in construction and gardening, with the completion of two new Hotels jobs are scarce, and wages are being reduced, and each worker has to negotiate the terms before getting on board.
Migrant workers are an asset to every country where they bring their labour. Let us give them the dignity they deserve as human beings and the respect they deserve as workers
Juan Somavia, Director General of the ILO
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